15. June 2007

Real States in Pune and IT Professionals

I found it somewhere . I dont know who the author is but it made me comprehend.

I work in a Small IT firm at Pune. I have been looking for a house at
Wanawadi area for last six months. I have visited several new Constructions
as well as contacted various dealers.

i have had discussions with agents, who quoted Rs 45 lakhs on PHONE FOR A
3bhk and which went up to 55 lakhs the moment he come to know that I work in
an IT Company.

I finalised a Dupleix for 30 lakh only to see the owner jack its price to 40
lakhs because some agent in his society told him that he is selling him
cheap and he should sell at 40 lakhs. Till now the flat is unsold and i am
now quoting 25 lakhs for it.

I have visited new constructions and they keep on hiking prices by 200 every
week till last month. Its a another fact that most of the units are not yet
sold.


One Builder in Lullanagar keeps on increasing his flat rate by 8 lakhs every
four months with atleast 30 flats not yet booked. He has completed his
construction four year back. This alone shows the type of demand.

In one society the rate has gone from 1800 to 3100 in one year and with the
fact that only 50% of the flat has been sold and most of them at below 2100.

So what make them think that they are worth 3100 per sq feet or 60 lakhs for
a 3 BHK when the going rate was half a year back.

The common answer is – IT is coming. They have very high salary and low
mental aptitude and can easily be fooled into paying that rate.

There is an another angle to it. It is the agent lobby. They have now
started to work on anything beyond X is mine policy. Talk to any agent and
you find that They have flats at baner worth 1 crore and if you dont buy it
in a day it will go. If you happen to meet the same agent six months back,
he had said the same thing abouth that flat at Baner, but at 25 lakhs.

Suddenly Baner, Kharadi has become as expensive as the heart of Pune.

Its a another fact that it still resembles a Village and if you have not got
your own car, you will be skimmed big time by any auto that you find after
waiting for one hour.

House search is a big joke. I have simply laughed at whenever any agents
tell me that if I dont take a decision in another Ten minutes, someone else
will buy the flat. Trust me, no one is going to buy that. Ask your wife to
call that same gentleman again after 2 months and he will still be selling
you at the same time.

I have the following suggestion for any flat hunters-

1. Tell them beforehand that you are from IT and listen to whatever price
they quote.

2. Go and see the flat.

3. Meet the owner.

4. Quote him and not the agent around 10-15 lakh lower than its price.

5. Come out.

Trust me, if he really wants to sell he will follow you after a month.

Till the time you can live on rent. At the maximum a 2 BHK will cost you
10000. Please remember that if you buy anything for the rate they quote and
if you need to shift to Bangalore, you wont even get half of it. The same
agent who sold you at that rate will quote 75% when you plan to sell.

Remember all the resale flats are owned by investors who themselve are
feeling the pinch of high interest rate and want to get out. Its the greed
installed by the agents which is stopping them.

Call every builder you get. Tell them that you work in Oracle and IBM etc.
They will tel you that only two units are left. Then say that you dont want
because you need a choice. They will then say that there is lot of flats
from which you can choose.

Now ask for the price. The moment they quote laugh heavily and say that they
must be joking and then disconnect. Please remember to give them your phone
number. Trust me I still get calls from these guys.

This strategy has worked for me. Prices have come down from 65 lakhs to 50
lakhs now and I have become greedy. Remember Pune is not Mumbai. Just drive
through 10 kms and you see so much empty land.

This is just greed where they have assumed some wrong things about IT

Industry– They all are idiots.

Every IT person makes 1 lakh and above.

Again they are fools.

Remember there are guys out to exploit you.

17 Comments

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1. nitin From HONG KONG (HONG KONG) Wrote on 18. June 2007 at 1:10 pm

very well said hem..

Even i was looking for a falt in mumbai..the flat was bought at 7 lakh in 2001 and now the quotation is 27 lakhs..

And the fact is, dont think that in 6 six years its bound to happen..it was just these two years when the prices tripled..

And our government took no note of this..Cement which was cheaper to import was not imported to safeguard our indian cement manufacturers..
And the IT factor is definitely there…

We shuld be street smart…but the land shark’s have already opened there jaws to engulf the juicy IT professionals…

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2. hem acharya From HONG KONG (HONG KONG) Wrote on 18. June 2007 at 3:30 pm

Thanks for u valuable view nitin…

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3. Manish Sohaney From UNITED STATES (UNITED STATES) Wrote on 26. July 2007 at 1:02 am

Don’t forget to look on the other side. If you don’t buy because of the greed, it might be beyond your reach tomorrow. A very simple math. Available land in India is not going to go up, since India is a democratic country and will not attack on neighboring countries. Also there is no barrier to population growth. So, the population per sqft is going to be denser and land price is going to go up for sure.

Just a thought.

Manish

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4. cement 196.25.255.210 not found Wrote on 09. December 2007 at 9:24 pm

Some valuable information on the construction and building industry in your country. Thanks for this.

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5. Kaustubh From UNITED KINGDOM (UNITED KINGDOM) Wrote on 20. April 2008 at 3:42 pm

very well said man…
allu should quit real estate space… it’s ending no where… those guys don’t deserve this money and there is no value for money… it’s all builders and politician lobby… they are not allowing individul plot holders to build houses on their plots… my relative have a 3 guntha plot in Baner… all the plot holders are absolutely helpless, PMC dogs are not granting construction permission to all plot holders giving one or the other silly reason. Politiciand and builders are behind this…
Baner is a dirty village and local gao-wallas are piece of s*it… mainly rashtrawadi are gunda number one… residents in baner live under rashtrawadi terror… the local corporator does nothing (because of no education of course)…
Real estate is trap set by builders and politicians to suck all the money from your pocket… a scheme is projected as a GLAMOUR, especially IT folks as most of them have spent years in the west…
real estate agnets are also part of builder lobby and politicians…
In short, it’s a perfect trap set up by these guys.
Save your life and money… invest in your-self, your family and your next generation… Don’t give a penny to these bast**ds

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6. Dada From UNITED KINGDOM (UNITED KINGDOM) Wrote on 20. April 2008 at 4:39 pm

What is being shown to the world about Pune real estate is a HYPE. Regarding BANER, the fact is BANER still resembles a VILLAGE and not just a village, but a village of gunda raj lead by a local politician. Life in Baner is not peaceful at all and nor quality either. All the areas of Baner are under-developed. Very few places are semi-developed. Rate of anything above RS 2000/- per sq. ft is not at all value for money, but a waste of life.
I am living in Baner from the past 12 years, and I know the situation correctly than any other reading this blog, I believe. PMC don’t have a agreed plan for development of Baner and the present corporator does absolutely nothing in terms of any development. The main road being expanded is because of the up-coming sports event in Balewadi and is done by central government, not by PMC.
It is absolute RISK to put in money in Baner Real Estate at this rate, the investor will certainly end up in a nightmare if lifetime and will regret on this decision.
All the best.

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7. Sebastian Varghese From UNITED STATES (UNITED STATES) Wrote on 23. April 2008 at 1:03 pm

can anyone please tell me what will be the cost per square foot near hinjewadi in pune? Since me and my wife are located in Hyderabad and are planning to settle in pune we would like to know the rates for a 3bhk flat. Since it seems reading the above discussion that builder are charging heavily it would be great if someone could enlighten me on the same.

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8. Dada From UNITED KINGDOM (UNITED KINGDOM) Wrote on 29. April 2008 at 1:10 am

Current prices near Hinjawadi are RS. 2300 per sq. ft. which are totally inflated.
There is no justification at all for this price tag. The area is totally country side, worst roads, un-hygenic, no water, no drainage, no street lights, no public infrastructure.
Think 100 times before you put your money in Pune real estate. It’s a total hype and a trap set by builders and politicians to cheat you.
If at all you wish to buy a flat in this area, negotiatate at around Rs. 1900 per square feet. Hopefully you will settle at near by offer. If you wait till July, prices will come down drastically.

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9. sam From UNITED STATES (UNITED STATES) Wrote on 03. May 2008 at 1:06 am

Interesting insight, I must say….Anyone have any thoughts about Gera Project Skyvillas in Kharadi? What’s the going price per sq. ft. in Kharadi? How is Kharadi – is it a village like Baner described above or well developed? What’s the reputation of Gera? I appreciate your input in advance.

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10. Sandip Sarode From INDIA (INDIA) Wrote on 02. June 2008 at 6:28 pm

Available plot at Baner,Hinjawadi,Chandkhed,Chakan, Thergaon with good location

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11. sunil chaudhari From INDIA (INDIA) Wrote on 03. July 2008 at 6:09 pm

1) Despite in IT for 13 years with 1 Lakh plus salary I am simply scared to buy home in pune. It is easy to buy home in USA and UK (I stayed in both countries for 2+ years) sitting here earning whatever I am earning
2) Builders till today exploited pune left and right. Now its their turn.
3) I personally had a same experience. The realistic prices for new apts in my opinion are
Aundh 2100
Kothrud – 2000 to 2100
Rest all should be in the range 1500 to 1800
4) A friend of mine came from USA after staying there for 8 years and cant dare to book a simple flat in pune.
Look at IT market – I have no idea if I will have Job after 3 months and more than that how long I can continue with mess IT is in today
5) DONT EVEN THINK OF BOOKING ANYTHING. SELL OFF IF YOU HAVE ANY PROPERTY (AND IF YOU CAN)
6) HERE IS WHAT HAPPENED IN USA AND NOW IN UK (DONT BELIEVE ME. READ FROM ANY SOURCE, NET, CHANNELS ETC)
1) X BOOKS A PROPERTY LETS SAY 250000 USD.
2) HUGE EMI
3) PRICES STARTED REDUCING (THIS IS 1.5 YEARS BACK)
4) THE PROPERTY IS EVENTUALLY WORTH 150000 USD (THERE IS A 40 TO 60 % CORRECTION IN USA AND SLOWLY UK MOVING TOWARDS THAT)
5)X SEES THAT WITH EMI IT WILL COST HIM 400000 OVER A PERIOD OF TIME AND ITS WORTH LESS THAN 150000 USD
6)X ABANDONS LOAN, PROPERTY ETC EVERYTHING
THAN BANK IS IN DEEP TROUBLE AS EVEN THEY DREAM IT TO BE WORTH 300000 USD
7)SO BANK IS DOOMED. (THIS IS REALITY RIGHT. LOOK AT BANKS IN USA)
8)THE PROPERTY THEN BECOMES 125000 BECAUSE DOOMED BANK SEO’S HAVE 1 SINGLE TARGET. COLLECT MONEY.
9) THE PROPERTY IS FURTHER WORTH 110000 USD
10) Y STAYS NEAR X.
SINCE X PROPERTY IS DOOMED, Y PROPERT IS DOOMED TOO

This now will happen in India

DSK, ADITYA, KUMAR
In USA since there is a value to human life , declaring banruptcy is relatively easy(at least you keep getting food etc)
who will help Indians who have booked your flats for 40 Lakh rupees with EMI of 45000 for 30 years and with Job VISIBILITY of 3 months?

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12. Rajesh Sharma From INDIA (INDIA) Wrote on 03. July 2008 at 6:10 pm

I surveyed properties across Pune in the last couple of days (20-23 Apr 2008). What I found was that in most cases where bookings have been made they have been made with the same logic that people were using when Sensex was at 22,000. Market is only going to go up and no matter what in six months I will double the money.

Another thing to note was that in two or three good apartment /flats complexes almost ready for possession in the next three months most of the 2BHK’s were either sold out or on the verge of selling out. If you show enough interest then they will tell you that there is one flat here or there booked by a person as an investment and that can be made available. I also came to know that bookings for 3BHK’s have been on a slow burner and i could easily have a pick of my choice. Conclusion to be made is flats are still available and the builders are just bluffing and hoping that you will buy it.

Given the above situation yet the builders in the last few days have increase their rates roughly from around 2800 per sq. ft. to about 3000 to 3200 per sq. ft. What their rationale behind this? I for one sense a conspiracy to say the least. With this round of price increases they are trying to create a sort of wave that property market is still very hot and prices are only going to go up so you better run to the next builder and book immediately as he cannot guarantee its availability beyond 5.00pm (everyday by the way).

Slowly but reluctantly I have come to a conclusion that even if I will sit out for the next 6 months to a year and wait for these maharajahs to be bought to the earth and then buy some real estate.

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13. daz From UNITED KINGDOM (UNITED KINGDOM) Wrote on 14. December 2008 at 11:50 pm

when i staye din Pune, next door to the military running track near high spirits, someone said the flats were selling for 200,000. 4 bedrooms each with en suite. kitchen was rubbish though. that was only July 2007, i guess we would have been charged more, being foreigners!!

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14. Pune Real Estate From AUSTRALIA (AUSTRALIA) Wrote on 24. November 2009 at 3:56 pm

I heard that Property rate will increase in next 2 months.
Is it correct ?

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15. Neytri From INDIA (INDIA) Wrote on 18. January 2010 at 12:00 am

Well I don’t think the case is different in any other part of the country, now it’s like the moment you say IT, and people think you must be definitely stupid and rich. I live in Hyderabad and same thing is happening with me as well.

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16. wire stripper From CHINA (CHINA) Wrote on 13. May 2010 at 1:35 pm

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17. bambi From AUSTRALIA (AUSTRALIA) Wrote on 19. July 2011 at 12:25 pm

They said that Property rate will increase in next 2 months.
Is it true?

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